Buying Options for a Volatile 2017

The Trump rally continues. But investors should buy puts and calls to cope with the inevitable disappointment or shock next year.

In 2017, trading patterns are likely to be so erratic and sector performance so uneven that at times the proverbial wall of worry may solidify into the real thing—especially if President-elect Donald J. Trump’s “QE4” stimulus policies, in particular lower corporate tax rates, differ from Wall Street’s expectations.